Thanks for your reply bvbfan.
I would like to do it through securities traded in the ASX. I am also looking for some leverage.
One other question: Is there any possibility of purchasing Call options that track one of the indexes?
Joe2000, have you looked at XJO options? Although they are based on the ASX200, it is said that the market makers use SPI futures to hedge, so the smaller fluctuations are more likely to follow the SPI. However, longer term, this shouldn't be too much of a problem.
One other thing though, I believe that undertanding the IV component of option pricing is essential for trading any options and the XJO is certainly no exception. It's IV levels do fluctuate and IV skews are also quite common (meaning different IV levels may exist either vertically, horizonatally and/or between puts and calls).
Other alternatives to XJO options would be SPI futures or index CFDs. Not recommending anything here - just giving some ideas to research for yourself!
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